Reportable Segments

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Reportable Segments

(16) Reportable Segments

(a) Summary of Reportable Segments

The Company’s operations, which are located in the United States, are organized into three reportable segments: (i) the exploration, development and production of natural gas, NGLs and oil; (ii) marketing and utilization of excess firm transportation capacity and (iii) midstream services through the Company’s equity method investment in Antero Midstream. Substantially all of the Company’s production revenues are attributable to customers located in the United States; however, some of the Company’s production revenues are attributable to customers who then transport the Company’s production to foreign countries for resale or consumption. These segments are monitored separately by management for performance and are consistent with internal financial reporting. These segments have been identified based on the differing products and services, regulatory environment and the expertise required for these operations. Management evaluates the performance of the Company’s business segments based on operating income (loss). General and administrative expenses were allocated to the midstream segment based on the nature of the expenses and on a combination of the segments’ proportionate share of the Company’s consolidated property and equipment, capital expenditures and labor costs, as applicable. General and administrative expenses related to the marketing segment are not allocated because they are immaterial. Other income, income taxes and interest expense are primarily managed and evaluated on a consolidated basis. Intersegment sales were transacted at prices which approximate market. Accounting policies for each segment are the same as the Company’s accounting policies described in Note 2—Summary of Significant Accounting Policies to the unaudited condensed consolidated financial statements.

Exploration and Production

The exploration and production segment is engaged in the development, production, exploration and acquisition of natural gas, NGLs and oil properties located in the Appalachian Basin. The Company targets large, repeatable resource plays where horizontal drilling and advanced fracture stimulation technologies provide the means to economically develop and produce natural gas, NGLs and oil from unconventional formations.

Marketing

Where feasible, the Company purchases and sells third-party natural gas and NGLs and markets its excess firm transportation capacity, or engages third parties to conduct these activities on the Company’s behalf, in order to optimize the revenues from these transportation agreements. The Company has entered into long-term firm transportation agreements for a significant portion of its current and expected future production in order to secure guaranteed capacity to favorable markets.

Equity Method Investment in Antero Midstream

The Company receives midstream services through its equity method investment in Antero Midstream. Antero Midstream owns, operates and develops midstream energy infrastructure primarily to service the Company’s production and completion activity in the Appalachian Basin. Antero Midstream’s assets consist of gathering pipelines, compressor stations, interests in processing and fractionation plants and water handling assets. Antero Midstream provides midstream services to Antero Resources under long-term contracts.

(b) Reportable Segments Financial Information

The operating results and assets of the Company’s reportable segments were as follows (in thousands):

	Three Months Ended June 30, 2023
					Equity Method
	Exploration				Investment in		Elimination of
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Sales and revenues:
Third-party	$	909,092		43,793		274		(274)		952,885
Intersegment		420		—		258,013		(258,013)		420
Total revenue		909,512		43,793		258,287		(258,287)		953,305
Operating expenses:
Lease operating		28,748		—		—		—		28,748
Gathering, compression, processing, transportation and water handling		663,975		—		52,595		(52,595)		663,975
General and administrative		53,901		—		18,162		(18,162)		53,901
Depletion, depreciation and amortization		171,406		—		35,233		(35,233)		171,406
Impairment of property and equipment		15,710		—		—		—		15,710
Other		42,326		66,175		6,774		(6,774)		108,501
Total operating expenses		976,066		66,175		112,764		(112,764)		1,042,241
Operating income (loss)	$	(66,554)		(22,382)		145,523		(145,523)		(88,936)
Equity in earnings of unconsolidated affiliates	$	19,098		—		25,972		(25,972)		19,098
Capital expenditures for segment assets	$	285,784		—		41,782		(41,782)		285,784

	Three Months Ended June 30, 2024
					Equity Method
	Exploration				Investment in		Elimination of
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Sales and revenues:
Third-party	$	928,644		49,418		414		(414)		978,062
Intersegment		592		—		269,381		(269,381)		592
Total revenue		929,236		49,418		269,795		(269,795)		978,654
Operating expenses:
Lease operating		29,759		—		—		—		29,759
Gathering, compression, processing, transportation and water handling		663,442		—		56,409		(56,409)		663,442
General and administrative		59,428		—		21,219		(21,219)		59,428
Depletion, depreciation and amortization		170,536		—		37,576		(37,576)		170,536
Impairment of property and equipment		313		—		—		—		313
Other		46,358		70,807		1,838		(1,838)		117,165
Total operating expenses		969,836		70,807		117,042		(117,042)		1,040,643
Operating income (loss)	$	(40,600)		(21,389)		152,753		(152,753)		(61,989)
Equity in earnings of unconsolidated affiliates	$	20,881		—		27,597		(27,597)		20,881
Capital expenditures for segment assets	$	192,385		—		43,399		(43,399)		192,385

	Six Months Ended June 30, 2023
					Equity Method
	Exploration				Investment in		Elimination of
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Sales and revenues:
Third-party	$	2,258,568		102,322		546		(546)		2,360,890
Intersegment		763		—		517,216		(517,216)		763
Total revenue		2,259,331		102,322		517,762		(517,762)		2,361,653
Operating expenses:
Lease operating		58,069		—		—		—		58,069
Gathering, compression, processing, transportation and water handling		1,309,147		—		110,468		(110,468)		1,309,147
General and administrative		111,162		—		35,509		(35,509)		111,162
Depletion, depreciation and amortization		338,988		—		70,429		(70,429)		338,988
Impairment of property and equipment		31,270		—		—		—		31,270
Other		99,164		171,299		7,488		(7,488)		270,463
Total operating expenses		1,947,800		171,299		223,894		(223,894)		2,119,099
Operating income (loss)	$	311,531		(68,977)		293,868		(293,868)		242,554
Equity in earnings of unconsolidated affiliates	$	36,779		—		50,428		(50,428)		36,779
Capital expenditures for segment assets	$	637,096		—		84,739		(84,739)		637,096

	Six Months Ended June 30, 2024
					Equity Method
	Exploration				Investment in		Elimination of
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Sales and revenues:
Third-party	$	2,001,813		97,938		1,085		(1,085)		2,099,751
Intersegment		1,174		—		547,761		(547,761)		1,174
Total revenue		2,002,987		97,938		548,846		(548,846)		2,100,925
Operating expenses:
Lease operating		58,880		—		—		—		58,880
Gathering, compression, processing, transportation and water handling		1,335,723		—		110,327		(110,327)		1,335,723
General and administrative		115,290		—		42,440		(42,440)		115,290
Depletion, depreciation and amortization		343,590		—		74,671		(74,671)		343,590
Impairment of property and equipment		5,503		—		—		—		5,503
Other		108,148		130,620		2,404		(2,404)		238,768
Total operating expenses		1,967,134		130,620		229,842		(229,842)		2,097,754
Operating income (loss)	$	35,853		(32,682)		319,004		(319,004)		3,171
Equity in earnings of unconsolidated affiliates	$	44,228		—		55,127		(55,127)		44,228
Capital expenditures for segment assets	$	414,834		—		78,472		(78,472)		414,834

The summarized assets of the Company’s reportable segments are as follows (in thousands):

	As of December 31, 2023
					Equity Method
	Exploration				Investment in		Elimination of
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Investments in unconsolidated affiliates	$	222,255		—		626,650		(626,650)		222,255
Total assets		13,602,297		17,117		5,737,618		(5,737,618)		13,619,414

	(Unaudited)
	As of June 30, 2024
					Equity Method
	Exploration				Investment in		Elimination of
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Investments in unconsolidated affiliates	$	223,552		—		612,847		(612,847)		223,552
Total assets		13,398,055		17,788		5,774,967		(5,774,967)		13,415,843